The battle that began almost two years ago was dropped voluntarily
The US Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Coinbase, marking the end of a legal battle that began in June 2023. According to court filings from February 27, the SEC voluntarily dismissed all litigation against the cryptocurrency exchange and its parent company, Coinbase Global, with prejudice, ensuring the case cannot be reopened.
Just filed, SEC v. Coinbase: STIPULATION OF VOLUNTARY DISMISSAL It is hereby stipulated and agreed by and between the parties and/or their respective counsel(s) that the above-captioned action is voluntarily dismissed, with prejudice against the defendant(s) https://t.co/2L5GN5H5V7 pic.twitter.com/jFWQHGuwSy
— Inner City Press (@innercitypress) February 27, 2025
The decision follows an agreement between both parties announced on February 21. The SEC stated that dismissing the lawsuit aligns with its efforts to reshape its regulatory approach toward the crypto industry. Under former chairman Gary Gensler, the agency took a strict enforcement-first stance, targeting major crypto firms, including Coinbase.
However, with recent shifts in leadership, the SEC appears to be moving toward a more structured and transparent policy-making process. Acting chair Mark Uyeda emphasized the need for regulatory clarity, suggesting that the commission is working to create a more defined framework for digital assets.
The SEC initially sued Coinbase on allegations that the platform operated without proper registration as a broker, clearing agency, or securities exchange. Regulators also claimed that Coinbase facilitated the trading of cryptocurrencies deemed to be unregistered securities, including Cardano, Solana, and Polygon. Coinbase countered these claims, arguing that the SEC had overstepped its authority, especially since the agency had previously approved the company’s public listing on Nasdaq in 2021.
The dismissal of the case comes amid a broader shift in the SEC’s approach, with similar lawsuits against companies like Consensys, Robinhood, and Uniswap also being dropped in recent weeks. With the creation of a new Crypto Task Force, the commission appears to be reassessing its stance on digital assets, potentially signaling a more cooperative regulatory environment moving forward.
